Assets
3 parts of PPE
Property (Land)
Plant (Buildings)
Equipment (Equipment)
What account would you record a bank loan as?
Bank loan payable
Interest expense
What type of asset is a truck that is held for sale by an auto dealership?
Inventory
Which IS a liability
Accumulated Depreciation- Equipment, Interest expense, Cash, Accounts Payable
Accounts Payable
How do you calculate the Double Diminishing Balance method?
1 / # of years x 2
What is the contra account for buildings?
Accumulated Depreciation - Buildings
How can you figure out how much interest is payable each month?
Yearly interest rate x principle balance / 12
How does an intangible asset distribute its cost?
Amortization Expense
What is an accounts Recievable
An amount that is owed to the company. I.E. Customer needs to pay
How is a mortgage payable classified on the Statement of Financial Position
Non-Current Liability, with a possible portion that is classified as Current.
What portion of a loan is considered an expense?
Interest expense